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Explain the best ways to gain economic growth and whether it's always good or bad Economic growth is a long run increase in an economy's potential output and real income

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Introduction

Economic Growth Essay Explain the best ways to gain economic growth and whether it's always good or bad Economic growth is a long run increase in an economy's potential output and real income, which increases the economy's living standards and also increase their GDP. There are many ways of getting economic growth, it can do a lot of good to the economy but there is also a downside to this as it can also cause problems for the economy as well. Economic growth is the increase in growth of a country's total capacity to be able to produce and provide goods and services. This will show the country's maximum potential growth and not just its actual growth as it uses up the unemployed workers, which means we would be increasing our output per worker. For countries to get economic growth they should improve their environmental issues, they should get rid of the unnecessary or unproductive secondary industries and bring in more tertiary industries, they should provide more and better services, they should spend more money on these industries as well. Tertiary industries such as education, healthcare and leisure will help and increase human development which is good for the economy, as it will allow as to become more productively efficient. ...read more.

Middle

This long term growth will increase a country's prestige and its power, which means this will allow the country to participate in international negotiations such as the IMF which will allow the country to build powerful and stable defence forces, they also will be able to trade at the WTO. Growth can also be achieved by supply side reforms, this will allow an increase in productivity (output per worker) as well as total output (total production) making workers more efficient and putting land and capital to more use. S.S reforms also include privatisations which will allow more firms to come into the same market, which will increase competition and efficiency amongst these firms. S.S policies reform unions this will also increase competition and efficiency and will stop workers from slacking off. If there is competition amongst firms then they will become more efficient thus lowering their prices and providing better quality goods and services meaning we can purchase cheaper goods and services and yet enjoy better living standards. Allocative efficiency is required so that the right amount of the right product is produced, this is so that resources aren't put to waste and we don't end up producing goods which no one will want to buy, allocative efficiency is good because it will maximise welfare. ...read more.

Conclusion

In this case sustainable growth is required, this means that we allow growth to continue without damaging future growth and the interests of future generations. This can be done through protecting non renewable resources as well as recycling renewable resources so that resources don't become scarce. Growth will cause many things to change and may cause on individuals, families and society. Growth requires a lot of change, people will need to learn new things, they will need new skills, jobs in old industries will be lost as tertiary becomes more popular and traditional societies and family links are threatened. The society and individuals may not want these changes even though it helps the economy, but the problem is its effective in a long run, growth can't happen straight away. This is why many people go against getting rid of old industries as their jobs will be lost and they may not be able to find an alternative straight away due to lack of skills. Overall I think growth is good for the economy as it does more good than bad for the economy, but the problem is that the good that's going to take place takes a long time to take affect, which means its bad for short term but good for future generations. ?? ?? ?? ?? ...read more.

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